The Massar IPO on the Abu Dhabi Securities Exchange opens for subscription by investors from Sunday, the company has confirmed.
About 240 million shares will be sold at Dh2.40 each, valuing the 40 per cent stake at Dh576 million. Emirati retail investors will be eligible to subscribe to one-fifth of the total on offer, with the balance reserved for national investing institutions.
The subscription period will last for 2 weeks and will close on Sunday, January 25, Massar said.
It said subscription forms are available at all UAE branches of the receiving banks: NBAD, Abu Dhabi Islamic Bank, Dubai Islamic Bank, FGB and Union National Bank.
Abu Dhabi Investment Company (Invest AD) and Abu Dhabi National Energy Company (Taqa) own 51 per cent and 49 per cent of the company, respectively and are selling 120 million shares each in the offer, Massar said.
Massar has been trading in the UAE as Al Wathba since 1999, from its origins as the fleet management business for the Abu Dhabi Water and Electricity Authority. It has recently diversified into car rentals, vehicle tracking and logistics, with about 450 customers.
Its biggest client now is BRF, the Brazilian food processing group known for its Sadia poultry range, which recently opened a US$160m facility in Abu Dhabi’s Khalifa Industrial Zone. Massar has the contract for distribution of BRF products throughout the region.
Financials released with IPO documents showed the company’s profit rose to Dh129.4m in 2013 from Dh93.9m in 2011.
Massar has said that it expects shares to begin trading on the ADX by the beginning of next month. The Abu Dhabi Securities Exchange General Index has lost 13.5 per cent over the past three months amid concerns over declines in crude oil prices and the economic outlook for the region.
Last week, the head of the UAE markets regulator said that companies preparing to go public are being advised to hold off in light of the recent turbulence.
Newly listed companies have lost up to 30 per cent in the value of their shares since October, said Abdullah Al Turifi, the Securities and Commodities Authority’s chief executive.
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